Freedom Financial Holdings Announces Earnings for Second Quarter of 2025

Core Viewpoint - Freedom Financial Holdings reported a net income of $799,896 for Q2 2025, a significant decrease from $2,019,348 in Q1 2025 and $2,044,233 in Q2 2024, indicating challenges in profitability despite improvements in core operations [1][10]. Financial Performance - Net income for the six months ended June 30, 2025, was $2,819,240, down from $3,208,460 for the same period in 2024 [1][10]. - Pre-tax, pre-provision income increased by 35.7% year-over-year to $1.84 million, driven by a 25-basis point increase in net interest margin to 2.66% and a 7.8% rise in non-interest income [2]. - Total revenue decreased by 5.86% compared to the linked quarter but increased by 10.57% compared to the same quarter in 2024 [7]. Income and Expenses - Net interest income was $6.88 million for Q2 2025, down 10.93% from the previous quarter but up 11.12% from Q2 2024 [4]. - Non-interest income rose to $1.31 million, a 34.14% increase from the linked quarter and a 7.79% increase from the same period in 2024 [6]. - Non-interest expenses increased by 5.49% compared to the linked quarter and by 4.95% compared to Q2 2024, primarily due to higher compensation and data processing costs [8]. Asset Quality - Non-accrual loans remained stable at 1.45% of loans held-for-investment, while total non-performing assets decreased to 0.98% of total assets [9]. - The company recognized a loan loss provision of $688,865, increasing the allowance for credit losses to 0.96% of loans held-for-investment [11]. Capital and Liquidity - Total assets as of June 30, 2025, were $1.07 billion, a decrease of $18.41 million from December 31, 2024 [12]. - Total liabilities were $987.96 million, down from $999.01 million in the previous quarter [13]. - Stockholders' equity increased to $84.12 million, with a tangible book value per share of $12.01 [14]. Capital Ratios - The bank's capital ratios as of June 30, 2025, were well above regulatory minimums, with a Total Capital Ratio of 15.20% and a Tier 1 Capital Ratio of 14.30% [16].